Page 1

How Friends and Colleagues Impact your Finances We’ve already touched a bit on how family impacts your finances in the first couple of paragraphs of this report. But the lessons we were taught at home are not necessarily carved in stone. Even if your parents were not exactly the best examples when it came to spending and saving, you can still change your views and practices about money. As you grow older and (hopefully) wiser, you’ll be able to experience the lessons in life that will lead you towards wiser and more practical decisions about your finances. By the way, if you’re a parent, you know the importance of giving your children a firm foundation about money. Teaching them the basics of saving, investing, and budgeting early on in life will serve them well as they grow older. More than these, instilling in children the role that money should play in their life is essential if you want them to grow up with a healthy view of it. Your Friends So what about your friends and other contacts? In what ways do they impact your finances? Before we go ahead and count the ways, let’s first make one thing clear: You don’t make friends for the purpose of improving your finances. You make friends for the sake of making friends and the more of them you have, the richer and more varied your experiences become. And since you naturally levitate towards those who you feel an affinity with, you’ll be able to find like-minded people who share your passion for success, wealth, and financial stability. If you’re on the road towards financial freedom, having friends who totally support your cause can give you that much-needed emotional boost when the going gets rough. However, be warned that money can also cause friendships to go sour. Borrowing money and not paying it back—even from your best friend—can strain relationships. So if you intend to borrow be sure to pay it back. Your Colleagues and other Contacts Your success at work depends partly on how you develop relationships with your boss and coworkers. A harmonious workplace is vital for productivity so if you want

to be able to work without having to worry about what people will say about you then you should make it a point to maintain good relations with everyone. Help those in need when you can and if you have an issue with a fellow worker, try to settle it with him or her privately at first. Don’t engage in backstabbing or gossip as this almost always backfires. If you’re up for promotion and you’re in competition with someone who is equally qualified, your boss will most likely take into consideration your rapport with other members of the team. The more positive feedback others will give about you, the higher your chances of getting promoted—and increasing your earning capacity as well. You probably already know that your boss is the one person in the office that you want to be on good terms with. While the norm for most of the rank-and-file is to please their bosses by doing anything and everything that is asked of them, a much better solution is to prove your worth in your line of work. Showcasing your professionalism (arriving on time, submitting reports, etc.) and expertise will get you in your superior’s good graces better than volunteering to get his laundry. The art of negotiation is also something that you need to practice with your boss if you want to ask for a higher paycheck. Be polite but firm in your request. Be sure to do your research beforehand so that you are ready to answer any questions he or she may have about it. The contacts you are able to forge online as well from the circles or associations you are members of are valuable as you expand your network. How can they impact your finances? First of all, it’s a given that your career path isn’t always linear. You experience bumps along the road—you could get laid off, for example, and need to look for a new job. You might also want to resign because of one reason or another and want to work for a different company. You might want to start a business on the side. Whatever your reason is, the network of contacts you have made can direct you to leads that will give you a fresh start. They can point you to individuals they know in other companies who might be interested in hiring your services, for example. They might provide you with eye-opening ideas that will enhance the business project you have in mind. They might even hire you as a consultant. Certainly, the possibilities for collaboration and cooperation are there when you have created a network of contacts.

Check out for more Information on How to Manage Your Debt.

Other related info you might be interested in: • • •

Marriage and Your Financial Compatibility The Challenge of Living Below Your Means—and the Rewards of Doing So Starting with Your Net Worth Statement

How friends and colleagues impact your finances